a form of gambling in which tickets are sold and prizes awarded by chance. Prizes may be money, goods, services, or even land. Lottery is distinguished from other forms of gambling by the fact that skill is not a factor; winners are determined entirely by luck. In some states, lottery winnings are paid out in a lump sum or in annual installments.
In colonial America, lotteries played a large part in financing public and private ventures. Benjamin Franklin held a lottery in 1748 to raise funds to purchase cannons for Philadelphia defense, and George Washington ran one to build a road over the mountains of Virginia (the Mountain Road Lottery was unsuccessful). Lotteries also helped fund Boston’s Faneuil Hall and the construction of buildings at Harvard and Yale.
The use of lots to determine fates and to distribute wealth has a long history, and was used by the Romans for municipal repairs. Lotteries became common in the 17th century and were hailed as a painless way to pay taxes.
Despite these benefits, critics contend that state lotteries are problematic in several ways. They are alleged to promote addictive gambling behavior, to place a regressive tax burden on low-income groups, and to increase social inequality. They are also said to run at cross-purposes with the state’s responsibility to safeguard the welfare of the public. In addition, many argue that state-run lotteries have an inherent conflict of interest with their desire to maximize revenues.